Interpreting consumer trends

Ericsson ConsumerLab was formed in 1995 and has been studying people’s behaviours and values, including the way they act and think about ICT products and services ever since. Cecilia Atterwall, head of ConsumerLab talks to Comm. about the trends leading the modern-day mobile telecom industry

According to Ericsson ConsumerLab, network performance management is one of the key priorities for service operators today, and that comes as little surprise given the amount of data traffic that continues to grow over their networks. Cecilia Atterwall, head of ConsumerLab, says that coverage issues and the risk of mobile applications crashing have become the second largest determinant of consumer satisfaction after value for money.

“Service providers need to work with network performers, consider other areas, and then start differentiating their offerings,” Atterwall said. “Customer care is also very important given that late adopters need support.”

At the other end of the spectrum, career tech elites, amongst the most demanding segment of a service operator’s consumer base, are in need of personalisation of services, of specific relevance, and of rewards and loyalty schemes that recognise their importance.

With respect to the encroachment of over-the-top (OTT) players into the areas previously dominated by traditional telcos, Atterwall says the important element is to understand who is taking responsibility of the customer experience, and to ensure that experience is optimised.

The mobile Internet experience is considerably different to a fixed or PC-based one, and service providers stand to gain considerably for the recognition of such differences.

“Mobile access to the Internet is more purpose driven, while fixed Internet is a lot more about browsing,” Atterwall said. “There is a higher propensity to pay for Internet access in a mobile environment, and in places like Africa where fixed infrastructure is poor; a mobile device is seen as an asset to improve the quality of life.”

ConsumerLab has also identified a number of other trends that it believes will see significant expression in 2013 and beyond, one of them being that cloud reliance will reshape device needs. Ericsson believes that products aimed at the mass market increasingly require access to the Internet, as devices without connectivity are becoming difficult to use for those who wish to access all services seamlessly on all devices.

Instead of sitting at a work desk and completing tasks, there has been a shift in favour of a computing paradigm where things are handled on the spur of the moment and with one hand – subject to the flow of events as we stand in a shopping line or run between buses. Ericsson believes this trend highlights how there is a requirement for computing for a scattered mind.

Consumers will also increasingly bring their own broadband to work, with a ConsumerLab study showing that 57 per cent of all smartphone users are working people who use their privately paid smartphone subscriptions at work, compared to only six per cent who receive their smartphone bills paid by employees.

Ericsson ConsumerLab also notes that city dwellers are going mobile relentlessly. Total smartphone subscriptions are set to reach 1.1 billion by the end of 2012, and according to Ericsson’s Mobility Report this number is expected to grow to 3.3 billion by 2018.

In Ericsson’s on-going city research, the company asked people from 18 megacities how satisfied they were with 30 different aspects of their cities, including factors such as safety and the quality of education. Overall 67 per cent of city dwellers were found to be satisfied with mobile network coverage – with total satisfaction levels peaking at 85 per cent in Delhi, 80 per cent in Berlin, and 78 per cent in New York.